Rolling 20-Week Correlations of the S&P 500 to the Usual Havens During this decade’s market shocks, traditional havens have too often failed to hedge, frustrating investors who assumed they would shield portfolios. The takeaway: diversification has to be multidimensional and adaptive. Image: Deutsche Bank
S&P 500 Implied Correlation The S&P 500’s growing dispersion is putting stock selection back in focus, with fundamentals doing the talking again. Image: Goldman Sachs Global Investment Research
S&P 500 vs. U.S. 10-Year Bond Correlation Since the COVID-19 pandemic, equities and bonds have increasingly moved in tandem, especially during inflation spikes and rate hikes, weakening bonds’ traditional role as a diversifier. Image: Goldman Sachs Global Investment Research
2-Month U.S. Equity/U.S. 10-Year Bond Yield Correlation The two-month correlation between U.S. equities and 10-year yields has broken down to late-1990s extremes, typically a recipe for higher volatility and greater pressure on duration-sensitive sectors, especially growth stocks. Image: Goldman Sachs Global Investment Research
1-Month Rolling Correlation of 10-Year UST Yield Change and S&P 500 Returns Since the start of the Middle East conflict, U.S. Treasuries have struggled to play their traditional diversification role. The one-month rolling correlation between 10-year yields and equitie returns has sunk to a multi-decade low. Image: Goldman Sachs Global Investment Research
Bitcoin-Nasdaq 100 30-Day Correlation Bitcoin’s correlation with the Nasdaq 100 has surged to multi-year highs, but as macro conditions shift and the crypto market matures, its link to traditional equities could start to loosen. Image: Bloomberg
200-Day Correlation Between S&P 500 and Gold Spot Gold’s old reputation as a crisis hedge is looking dated. The metal is increasingly trading like a risk asset, tracking U.S. equities as a declining dollar and heavy central-bank demand reshape its place in global markets. Image: Bloomberg
Rolling 90-Day Correlation Between the S&P 500 and U.S. IG Credit Spreads Credit and equities are back in sync: the 90‑day correlation between U.S. IG credit spreads and the S&P 500 has spiked, a sign that macro forces and market mood now bind the two tighter than before. Image: Deutsche Bank
Correlation Between Top 10 and S&P 500 While the concentration of large-cap stocks in the U.S. equity market is a topic of discussion, the evidence suggests that its impact on market behavior is not as alarming as some might believe. Image: S&P Dow Jones Indices
5-Year U.S. Treasury Yield vs. Bank Stocks Correlation The combination of higher bond yields and rising bank stocks is often often viewed as a sign of a bullish market environment. Image: BofA Global Investment Strategy
U.S. Stocks – Average Stock Correlation in the S&P 500 The current trend in the S&P 500 indicates a significant rise in stock correlation, suggesting a more homogenous market behavior that could pose risks for investors relying on diversification strategies. Image: Goldman Sachs Global Investment Research